The Members of
AKME STAR HOUSING FINANCE LIMITED
We have audited the accompanying financial statements of Akme StarHousing Finance Limited ('the Company') which comprises the Balance Sheet as at 31stMarch 2019 the statement of Profit and Loss Account the Cash Flow Statement and thestatement of changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information incorporated in the Schedules andNotes to Accounts.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Accounting Standards prescribed undersection 133 of the Act and other accounting principles generally accepted in India of thestate of affairs of the company as at March 31 2019 the profit and loss account changesin equity ad its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit of the financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's responsibilities for theAudit of the Financial Statements section of our report. We are independent of the companyin accordance with the code of ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and Rules made there under andwe fulfilled our ethical responsibilities in accordance with these requirements and theICAI's code of ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of the most significance in our audit of the financial statements of the currentperiod. These matters were
addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.
Key Audit Matter: Prudential Norms prescribed by the National HousingBank: We assessed the company's process to follow the prudential norms and guidelinesprescribed by the National Housing Bank.
Information other than the Financial Statements and Auditor's Reportthereon
The company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement discussion and analysis Board's Report including annexure to Board's Reportbusiness Responsibility Report Corporate Governance and Shareholder's information butdoes not include the financial statements and our Auditor's Report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report the fact. Wehaving nothing to report in this regard.
Management's Responsibility for the Financial Statements
The Company's board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation and presentation of thesefinancial statements that give a true & fair view of the financial position financialperformance and cash flows and changes in Equity of the company in accordance with theaccounting principles
generally accepted in India including the Accounting Standardsprescribed under section 133 of the Act read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatements whether due to fraud or error.
In preparing the financial statements management is responsible forassessing the company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the company or to cease operations or has norealistic alternative but to do so.
The Board of Directors are responsible for overseeing the company'sfinancial reporting process.
Auditor's Responsibility for the Audit of theFinancial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these interim condensed financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
o Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud
may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.
o Obtain an understanding of internal financial controlsrelevant to the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
o Evaluate the appropriateness of accounting policies used andthe reasonableness of accounting estimates and related disclosures made by management.
o Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Company tocease to continue as a going concern.
o Evaluate the overall presentation structure and content ofthe financial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economic decisionsof a reasonably knowledgeable user of the financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the financial statements.
We also communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical requirementsregarding independence and to communicate with them all relationships and other mattersthat may reasonable be thought to bear on our independence and where applicable relatedsafeguards.
Form the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulations precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on other Legal and Regulatory Requirements
1 As required by Section 143(3) of the Act based on our
audit we report that
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of accounts as required by the law havebeen kept by the company so far as it appears from our examination of those books.
c. The Balance Sheet the Profit and Loss Statement the Cash flowStatement and the statement of changes in Equity dealt with by this Report are inagreement with the books of account.
d. In our opinion the aforesaid financial statements comply with theaccounting standards specified under Section 133 of the Companies Act 2013 read withrelevant rules issued there under;
e. On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2019 from being appointed as a director in terms of Section164(2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in Annexure B; and
g. with respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the company to its directors during the year is in accordancewith the provisions of section 197 of the Act.
h. with respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The company does not have any pending litigations which would impactits financial position.
ii. The company does not have any such long term contracts includingderivative contracts which can arise any material forseeable losses.
iii. There has not been any occasion in case of the company during theyear under report to transfer any sum to the Investor Education and Protection Fund
2 As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure A a statement on the mattersspecified in the paragraph 3 and 4 of the order.
|For H.R. JAIN & COMPANY |
|Chartered Accountants |
|Firm Registration No. 000262C |
|Manoj Jain |
|22nd May 2019 |